Safeway Files in Blockbuster Chapter 11

Safeway said it has filed a motion with the U.S. Bankruptcy Court of New York in the Chapter 11 proceedings of Blockbuster, a routine filing, the company said, since it is the landlord at several strip malls in California and Oregon that house Blockbuster stores and, in many cases, is a co-tenant.

PLEASANTON, Calif. — Safeway [3] here said it has filed a motion with the U.S. Bankruptcy Court of New York in the Chapter 11 proceedings of Blockbuster, a routine filing, the company said, since it is the landlord at several strip malls in California and Oregon that house Blockbuster stores and, in many cases, is a co-tenant.

According to Brian Dowling, a Safeway spokesman, the filing is intended to ensure a smooth transition for Blockbuster stores that close and to make sure that any store closures or going-out-of-business sales are not disruptive to the other businesses in the malls.

"It's a matter of trying to make sure reasonable procedures are followed as properties are shut down — to make sure the process is not detrimental to Safeway as a landlord or a co-tenant."